The currency blog

With a vast diversity in indicators leading to widely different opinions and prognostications as to the likely outcome for the current global economic down-turn. No one can be wrong - just yet - and no one will remember all the predictions that turn out to be wide of the mark. It is therefore no surprise that we see predictions for both a V shaped recovery but also for the recession to be maintained, bumping along as an L shape. Read the rest of this entry »

The G20 summit and the subsequent $1.1 trillion agreement designed to tackle the global financial crisis appears to give Sterling significant strength against most major currencies, hitting one month and two month highs against the Euro and Dollar respectively.

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Finally it seems as though Banks are starting to turn a corner. Following the positive results from US investment banks this week the market has been given a boost. With the UK having such a strong banking presence this news has also helped to boost sterling seeing GBP extend gains over the week to peak at 1.5068 yesterday. At the time of writing GBP is trading at 1.4825.

In the Eurozone the Euro has fallen to a one month low against the USD erasing gains seen at the end of February which saw EUR peak at 1.3660. EUR has also fallen to a two month low against GBP. At the time of writing EUR is trading at 1.3090 against USD and 0.8822 against GBP. Read the rest of this entry »

The pound has hit a three-month high against the dollar amid gloomy US data and signs of strengthening confidence in the UK currency. Sterling broke through the 1.50 dollar mark several times - its highest level since January. It also rose to 1.137 against the euro at one point, its best performance in more than a month. Analysts said the pound was helped by a fall in the dollar in the wake of news that US consumer inflation had fallen into negative territory for the first time in more than half a century. Read the rest of this entry »

As Good Friday means that we lost the opportunity to have a dress down Friday, we thought we would hold an Easter Raffle in the office with all proceeds being split evenly between this months charities (Cancer Research, Save the Children and the British Heart Foundation).

We had a bounty of goodies to give away that had been kindly donated from individuals in the office which included, Hotel Chocolate and Thornton’s Easter Eggs, DVD’s, t-shirts, boxes of chocolates and some hi tech gadgets! Read the rest of this entry »

Despite yesterday’s trading volumes being severely depleted resulting from the Bank Holiday across much of Europe and the UK; there was plenty of activity - both in the equity and the currency markets.

The Dollar dropped sharply in the Far East on heavy short covering in Euro/Dollar helped by rumours of strong buying from an Asian Central Bank. The rate rose from 1.3170 to get to 1.3390 before settling at 1.3365 and dragged the other majors with it. Cable moved from 1.4665 to reach 1.4870 before easing. Sterling however, has tracked higher again following a UK bullish article that appeared in the Telegraph in which the Lombard economist predicts that the UK Housing crisis will end by Christmas. Read the rest of this entry »